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Problems associated with policies1) Policies are liable to different interpretations since they allow discretion and are usually broad. If made specific they become rules and therefore lose their application as instruments of delegation and manager training.
2) Delegation through policies allow widespread participation in decision making. As more and more subordinates participate in the decision making process, uniformity is lost and inconsistencies emerge.
3) It is seldom possible to fully control through policy. In many instances, differences exist between actual policy, intended policy and pronounced policy. A political party might state that its policy is to achieve equitable income distribution when in fact the intention is to win elections and stay in office. Meanwhile government functionaries who do not subscribe to the concept of income distribution with their own vested economic or professional interest. In these circumstances, the control of policy becomes a very difficult task indeed.
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Functions of Purchasing Department
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